The purpose of this study is to establish the model of casual relationship of the factors influencing life satisfaction of elderly with physical disability. We built and reviewed the model under the assumptions that physical function, disability grades, economic status influenced the life satisfaction of E.P.D. and the influences were mediated by the discrimination experiences and the perceived disability discrimination. For this study, We analyzed the 380cases which were composed of E.P.D. over 60 yrs from the survey of disabled persons in korea(2008). The result was that 11 hypotheses of 22 hypotheses were supported. Disability grades, economic status were efficient to discrimination experiences and economic status, discrimination experiences were efficient to perceived disability discrimination. And physical function, disability grades, economic status were statistically significant to life satisfaction. Reviewing the indirect effect between the variables, the mediating effect of discrimination experience was efficient to disability grades and economic status and was efficient to the perceived disability discrimination, the disability grades and economic status effects to the perceived disability discrimination. We proposed the promotion strategy to enhance the E.P.D's life satisfaction on these results. First, We have to make a strategy for improving the heavily E.P.D's discrimination. Second, the income preservation policy of E.P.D is required. Third, the rapid intervention to the discrimination experience of E.P.D is needed. Forth, medical rehabilitation and exercise program for the promotion of physical function of E.P.D. is needed. Fifth, the improvement strategy for discrimination by connecting the sector of the welfare for the disabled and the welfare for the Elderly. Sixth, the further qualitative study is needed in the future.